[4] Species in the family are found in North America and Europe, where they grow in a saprobic fashion on submerged, decaying plant tissue.
[5] This sheath is thought to play the role of a "flotation mechanism", and ultimately give the ascospores a greater chance to become attached to the upper part of the host plant.
[2] The species Loramyces juncicola was originally found on growing dead, partly softened stems of Juncus militaris that were submerged in fresh water to a depth of a few inches to as much as a few feet in a pond on Nashawena Island, off the Massachusetts coast.
The habitat, situated a short distance inland, was buffered from the motion of waves by a thick growth of the Juncus plants that also partially shaded the water.
The gel-like substance surrounded the fruit bodies probably helps prevent the fungus from drying out when exposed to air by sinking water levels.